Flood zones are federally defined areas indicated by FEMA to signify a property’s risk of flooding. The flood zone will affect:

• Whether or not your lender will require flood insurance

• Your flood insurance premium

• Your options for resale and financing

In coastal communities like Oak Island, Holden Beach, and Southport, flood zones are a critical part of the homebuying process.

You’ll frequently encounter:

• Zone VE (Coastal High Hazard) – Oceanfront and inlet areas exposed to storm surge

• Zone AE – High-risk inland and marsh areas near rivers, creeks, or canals

• Zone X – Low to moderate risk. Insurance not required by lenders but still recommended.

You can always request a flood zone determination during your due diligence period.

We recommend starting with a FEMA flood map: msc.fema.gov

Or, work with your PROACTIVE agent – we can provide guidence on flood zones during the home search process.

Not always. Lenders usually don’t require flood insurance in Zone X. You should always check with your lender to verify their requirements. But even if it’s not required, you may want to consider it anyway:

• 20% of flood claims happen outside high-risk zones

• Zone X policies are very affordable

• Coastal storms are unpredictable

A Preferred Risk Policy is a great option – especially for second homes or vacation rental investments.

Rates vary based on zone, elevation, and distance from water. Here’s a general idea:

• Zone VE or AE: $800–$3,000+/year

• Zone X: $300–$600/year

With FEMA’s new Risk Rating 2.0, rates are now property-specific. Working with a local flood insurance provider is key – we’ll connect you with someone during the buying process.

Yes. In fact, many buyers choose private market flood insurance for:

• Higher coverage limits

• Competitive pricing

• Faster underwriting

We’re happy to provide referrals as part of your buyer consultation.

An Elevation Certificate (EC) shows how high your home sits relative to base flood elevation. It can:

• Lower your insurance rate (significantly)

• Satisfy lender requirements

• Help you apply for a zone change

Many homes in AE and VE zones—especially along the Intracoastal Waterway—will need an EC during purchase or construction.

Yes. In fact, most of the new construction homes in our area are built above base flood elevation, with:

• Elevated foundations or pilings

• Vented ground-level enclosures

• Modern materials to mitigate storm impact

Our builders follow local FEMA guidelines to help minimize risk and long-term insurance costs.

FEMA periodically updates Flood Insurance Rate Maps (FIRMs). If your property is reclassified into a higher-risk zone:

• You may be required to add flood insurance

• Rates may increase at renewal

However, some homes may qualify for grandfathered insurance rates, keeping costs manageable. Our agents will walk you through that during closing prep.

Yes—via a Letter of Map Amendment (LOMA). If your property is elevated but incorrectly classified in a flood zone, a licensed surveyor can submit documentation to FEMA for review.

PROACTIVE agents can help with this process.

Flood zones shouldn’t be scary—with the right team, they’re just part of the process.

At PROACTIVE Real Estate, we:

• Work with top local surveyors and insurance agents

• Understand coastal zoning, elevation, and new regulations

• Provide real estate guidance that protects your investment

Contact us today or visit one of our offices in Holden Beach or Oak Island to talk with a local expert.